Gazprom will not postpone Ukraine’s gas payment deadline set for Monday, CEO Aleksey Miller said. If Kiev fails to pay and therefore causes gas transit problems to Europe, Russia will pump more through the Nord Stream and Yamal-Europe pipelines.

The final deadline has been set for 10 a.m. Moscow time (6 a.m.
GMT) on Monday. If the Russian gas giant does not receive
US$1.951 billion at that time, it will force Ukraine to pay for
its gas supplies in advance, Miller told reporters on Thursday.

"If nothing has been paid, nothing will be supplied,"
Miller said.

Ukrainian company Naftogaz is to pay $1.454 billion for gas
supplies it received in November and December last year. It must
also show progress in paying its April and May debt, Miller
continued.

Ukraine’s gas debt currently exceeds $4 billion.

Russia, Ukraine, and the EU have been negotiating Ukraine's gas
price, which Kiev wants to lower to $268.50 per thousand cubic
meters.

After Moscow agreed to give Kiev a discount, the price stands at
$385 per thousand cubic meters. That is $100 less than the
previous price of $485 that Moscow set in accordance with the
contract after Naftogaz failed to pay for gas supplies.

Miller added that this price fully corresponds to the one which
is included in the IMF’s aid package to Ukraine.

Ukraine has taken a firm stance on lowering the price. According
to Miller, Kiev's “uncompromising position” actually
“sabotaged” the trilateral talks on Wednesday.

The Gazprom head also mentioned a statement by Ukraine's interim
Prime Minister Arseny Yatsenuk, which he made while the
trilateral talks were being held on Wednesday.

In the comment, Yatsenuk said: “There is no basis for
reaching the agreement” if Russia does not agree with Ukraine.
Miller responded by saying the comment was “absurd,
ultimatum-like and unconstructive.”

“At the same time such statements, according to the European
Commission, are completely irrelevant. We agree,” said
Miller.

If Naftogaz launches legal action against the Russian company in
the Stockholm Court of Arbitration, Gazprom will counter-sue
Ukraine for its failure to pay its debt and for not taking the
required amounts of gas under the "take or pay" contract over the
past two years, Miller said. The penalty in accordance with the
contract could be around $18 billion.

This week, Ukrainian energy minister Yury Prodan reiterated
Kiev’s intentions to file an appeal with the arbitration court in
Stockholm. Prodan stressed that taking the case to Stockholm is
the only way to settle the matter.

He elaborated that Ukraine is ready to continue the gas talks
"while waiting for the decision of the Stockholm Court of
Arbitration.”

Miller said on Thursday that Gazprom is planning to increase the
flow of gas via the Nord Stream and Yamal-Europe pipelines to
reduce the risk. He added that the company would also pump more
gas into underground gas storage facilities in Europe to avoid
shortages of fuel for European consumers in the coming period.

Russia will continue construction of the South Stream gas
pipeline – another route bypassing Ukraine – in order to
transport gas supplies to Europe via the Black Sea and Bulgaria
by December 2015, according to the Gazprom CEO.

“Gazprom will take all necessary measures to ensure
uninterrupted supply of gas to European consumers,” Miller
said.